How are the Customs Import Exchange Rates Determined
When goods imported into Australia are invoiced in a foreign currency, the invoiced amount must be converted to Australian dollars using the prevailing rate of exchange for that particular currency on the day of exportation.This direction is contained in section 161J of Division 2, Part VIII of the Customs Act 1901.The ‘day of exportation’ in relation to imported goods is defined in subsection161J(4) of the Customs Act 1901.AS
• the day the goods left the place of export.
• if posted, the day the goods were posted.
For goods packed in a container, the ‘day of exportation’ is the day the container leaves the place where it was packed.Containerised goods, whether transported as air or sea cargo, are often packed for export at the manufacturer’s premises or at a containerisation facility.
While the date the goods are packed may be known, the date the container is removed from the premises may not readily be available to the importer at the time the goods are entered for customs clearance.
Where the owner has no reliable and reasonably available information at the time the goods are entered for customs clearance to establish the actual day of departure or transportation from the place of export. Then Australian Customs will accept the day of departure of the vessel or aircraft from the loading port or airport, as shown on the bill of lading or sea or air waybill.
Who Sets the Actual Exchange Rate
Each working day the Reserve Bank of Australia (RBA) transmits to Australian Customs a schedule of the exchange rates for 28 selected countries.This prevailing exchange rate is then determined to be the ruling rate of exchange for that particular foreign currency as per subsection 161J(3) of the Customs Act 1901.
The 28 prevailing rates of exchange are directly uploaded into the Integrated Cargo System database upon receipt from the RBA, are valid for twenty-four hours from one minute after midnight on the day after they were uploaded excepting weekends, where Friday’s rates of exchange are valid for Saturday, Sunday and Monday.
For public holidays and bank holidays, the exchange rate is valid from one minute after midnight on the day before the public holiday or bank holiday until the RBA’s next working day.
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